Thayer Deal To Sell Trump Property Breaks Down

April 16, 1994|by MICHAEL HERNAN, The Morning Call

Donald Trump's deal to buy a prime piece of Philadelphia's waterfront from financially ailing Coopersburg businessman William Thayer has collapsed amid a swirl of competing offers and questions about the cost of an environmental cleanup at the site.

Thayer yesterday confirmed that the deal to sell the Jack Frost Sugar refinery on the Delaware River fell through Thursday. Trump wanted the site for a gambling operation in the event that betting is legalized in the city.

Thayer said the deal broke down over "five or six" items that he wouldn't discuss.

"We reached an impasse on those issues that we could not live with and no one could come up with a way around it," Thayer said yesterday afternoon from his attorney's office in Philadelphia.

Thayer said talks are heating up with four gaming operators interested in buying the 23-acre site. And Thayer is not counting out Trump.

"Nobody's gone for good. Who knows what can happen?" Thayer said. "Fortunately it's a great location and everyone wants it.

"Maybe Donald did me a favor."

Terms of the agreement with Trump were not disclosed but the bulk of the purchase was headed to pay a big back-taxes bill and two mortgages totaling about $9 million on which Thayer had defaulted. Thayer, who has been in bankruptcy for several years, was to get a minor ownership piece of the gambling venture that would have paid him a percentage of the casino's cut.

"I'm not getting anything upfront and I'm not looking for anything upfront," Thayer said. "I just want to be debt-free to the world. We want to pay everyone and get on with it.

"I'll get mine on the back end and that could be worth hundreds of millions of dollars."

Trump already purchased a $4 million mortgage from Royal Bank of Pennsylvania, which had financed 16 of the 23 acres.

But First Lehigh Bank, which holds a $4.5 million mortgage on the remaining seven acres, fought Trump's plan and instead backed an offer from Greenwood Racing, which operates the Philadelphia Park horse-racing track and several off-track betting parlors.

Greenwood's bid reportedly calls for $10 million up front and another $7 million if gambling is approved.

Any sale must be approved by U.S. Bankruptcy Judge Stephen Raslavich.

Thayer and several of his businesses have been in bankruptcy court for four years, trying to settle on payments for millions of dollars in judgments and federal tax liens.

Published reports said Trump may have been scared off by the possibility that the cost of the environmental cleanup of the land -- contaminated by PCBs and other hazardous substances --may run much higher than first estimated.

Thayer strongly disputed those reports.

The U.S. Environmental Protection Administration says Thayer owes it about $1.2 million for a cleanup that removed 13 PCB-laden transformers and more than 100 PCB transformers from the land, which at one time had been a haven for illegal immigrants and wild dogs.

Thayer said the property is clean and plans to appeal the ruling.

An EPA spokeswoman said it was unclear whether the entire cleanup was completed.

Thayer's attorney Tom Maiorino, said EPA officials during a hearing yesterday denied that bigger problems are lurking. He believes the story was floated to give Trump an out.

Thayer said an asbestos cleanup that will cost up to $350,000 will start within the next several months. That will complete the cleanup.

At least a half dozen casino operators are jockeying for position on Philadelphia's waterfront with hopes that gambling is legalized there within the next several years.

Some lawmakers expect to pass legislation legalizing some gambling once Gov. Casey leaves office at the end of the year. Casey opposes gambling.